In the days before the development of the IMF's S.D.R., or Special Drawing Rights, which was a preliminary attempt at a international currency and a way for governments to push gold away as a primary form of wealth/asset equivalency, there were discussions on what the role of the international community would be i) with regard to promoting the SDR as a globally accepted "currency" and ii) and more relevantly, how to retain dominance over the critical gold market by not just the US (represented in this case by the Federal Reserve) but by its core international counterparties.

A recently declassified telegram to the Secretary of State sent in 1968, has some very distrubring revelations to gold "conspiracy theorists" who believe there could be an international arrangement to maintain a control over gold prices in the international arena. This is especially true as the G-20 meets currently in Pittsburgh behind closed doors. Could gold be one of the issues discussed?

We particularly bring readers' attention to paragraph 13 in the telegram below, which present some troubling revelations (emphasis ours):

If we want to have a chance to remain the masters of gold an international agreement on the rules of the game as outlined above seems to be a matter of urgency. We would fool ourselves in thinking that we have time enough to wait and see how the S.D.R.'s will develop. In fact, the challenge really seems to be to achieve by international agreement within a very short period of time what otherwise could only have been the outcome of a gradual development of many years.

Furthermore, apparently 41 years ago the Plunge Protection Team had a more affectionate name (paragraph 11)

Special attention has to be given to the extent of the membership of the reshuffle club. A simple and effective rule probably would be that countries with asset holdings that are higher in relation to their gold holdings than the relation that is obtained amongst reshuffling countries are free not to participate in the reshuffles. On the other hand, countries whose asset holdings are relatively low (and whose gold holdings, therefore, are relatively high) should be obliged to submit themselves to the reshuffles. Indeed, this obligation seems so essential that it would have to become part and parcel of the new reserve asset scheme.

Also notable is the following disclosure (paragraph 3):

It is unlikely that the international monetary system could stand one or two more speculative crises like we have had last November and December during which gold losses were more than $1600 million. This is so because the point may be reached at which the speculation would reinforce itself in a cumulative way. Apart from this it is uncertain that members of the pool would be willing to go on supporting the market for such big amounts.

Oh really? "Go on supporting" presumably means they currently are supporting it? With the push for Fed transparency, could this one point get some additional insight, since if over 40 years ago the Fed, and the members of the gold "Pool" were openly intervening in the gold market, one can only imagine what the situation is now, especially with hundreds of trillions of new assets having been built on top of the Gold core of the inverted liquidity triangle?

In a nutshell - gold as an asset class is critical as it lies at the foundation of the entire credit/liquidity inverse expansion pyramid as presented by John Exter:

Control the gold, and you control the entire monetary system. For some historical Zero Hedge observations on gold, liquidity, and the dollar interplay, please see here.

How do they get the leaders of the resource nations to go along with this plan at the detriment to their citizens? ....oohhh thats what those secret numbered bank accounts in Switzerland and other banking zones are used for...

Experts debating whether “killer sharks” of Twofold Bay, New South Wales are using reason. Sharks drive whales into the bay, where whalers eventually harpoon them and reward sharks with “choice morsels ... such as liver”; sharks keep guarding mouth of the bay so whales can't escape.

My mon's mom's sister worked for the railroad as a telegraph operator. She knew morse code real well. Then she worked for Bell after they bought the operator routes from the railroads. When she got older she would walk around the house all day going "beep, beeeep, beep, beep". She didn't want to lose her morse code skills.

This is the biggest secret everyone knows about and no one acknowledges or discusses, except behind closed doors.

The only reason they got away with it this long was because the (corporately owned) mainstream media had a (shall we say) gentleman's agreement to not only never discuss it publicly but to mock and ridicule anyone who dared to do so.

How many times do/did we read a story along the lines of "Silly tin foil hat wearing conspiracy theorists"? Rather than look at facts, the press always engages in ad hominid attacks.

Repeat after me. We do not have an free and open press. We do not have a free and open press...............

yes....i have mentioned here the london gold pool
from the 1960s many times so this is no news
flash....

however much there may be a gentleman's agreement
it is an agreement cultivated and enforced
by the cia who report to the rockefeller /
rothschild cabal....the cia controls every
news outlet in amerika....and their paid for
whore newsfakers are only too happy to give you
orwellian news

the technqiue of ridicule works so well with
weak, low rent iq minds...

There are many moving parts to the machine, including our own intelligence services. The key is the "pile on" where everyone on cue brings the sledge hammer down on anyone breaking the silence.

I have spent hundreds and hundreds of hours researching this subject and most so called "conspiracy theories" are anything but. In fact, the "official" story is usually the actual conspiracy theory and almost always devoid of supporting facts.

But if the "official" story is pushed as the truth on Tee Vee it must be true, right?

they always attempt to manipulate gold down....
never never never do they want it to rise in
price in tandem with their monetary inflation
because gold is a true store of wealth because
it cannot be printed at will as can paper...

gold is an alternative to government bonds...
if people were to prefer gold to paper then
government paper would become more expensive....
and interest rates would rise...

low interest rates allow the oligarchs to rape
the sheeple whose money they steal for various
criminal enterprises....and the sheeple baaahhh...

the gold cartel lost control of gold for the
1970s but got a hold of it again in 1980...right
now they are struggling....someone just dumped
a lot of gold shorts over the past day causing
a decline in gold...but this too shall pass...

Very good summary of the cartel's objectives. I must take issue with your assertion that they lost control at any point. It sure doesn't seem that way to me. Sure price skyrocketed, but it seems to me it as more of an attempt to show that gold is as bubble prone as any other asset and that it isn't prudent to hold on to it due to its high volatility.

"The U.S. has lent, spent or guaranteed $11.6 trillion to bolster banks and fight the longest recession in 70 years, according to data compiled by Bloomberg.

That’s a 9.4 percent decline since March 31, when Bloomberg last calculated the total at $12.8 trillion."

"The tally “ignores the fact that virtually all commitments are backed by assets,”Andrew S. Williams, a Treasury Department spokesman who had the same role at the Federal Reserve Bank of New York until earlier this year, said in an e- mail. “The Federal Reserve’s current ‘outlays’ are largely in the form of secured loans. The aggregate value of the collateral backing those loans exceeds the loan value. These are not ‘outlays.’”

Sancho.....I got a chuckle out of the aggregate value of collateral statement too. Conveniently, it doesn't mention value AT THE PRESENT TIME OR ANY FUTURE TIME.

That good old mark-to-market magic works for the Fed's secured loan " collateral " statement REAL GOOD !! Until, of course, it comes time to dump all that dogshit into the marketplace....when there is a marketplace.....perhaps in 2019 at 65% .

By then, this whole Treasury/Fed crowd will be long gone running their own banks in Tora Bora.

at least the fed-res manipulators were honest with themselves about lacking independence from USTreas. back in the day...

An account with the Bank of Canada was opened in 1943, almost entirely as a courtesy measnro. Other accounts included those with Iran,
. 4 -
£gypt» aad India which were opened in our name in order that the Treasury would not be identified with certain transactions. These latter accounts have been closed. Authority

Much of this recently was financed by the yen carry trade. Since Japan is nuking that program and america is trying quickly to become the new butt end of that carry trade there may be a point in the very near future where theres not enough dark pool (carry trade) currency to support the supression. Since the carry trade would be very problematic if it got into a real economy. Which some people found out with the glacier bonds. It is used primarily as an accounting trick against the gold trade. Somebody better set up a new dark pool trick quick because people are calling 996 gold "hammered" down when it used to get hammered 60 bucks at a time.

jim willie thinks gold will sky rocket due to
the dollar carry trade...the logic is plausible...
his point is that gold will become one of the
preferred assets of the carriers since the
fed and "president" are doing all that they
can to debauch the currency and their crapulent
debt...

Well I think the plan was for china to become the pitcher and US to become the receiver. We do the same thing that japan did. Implode the banks with toxic debt set up a zombie bank system that is always broke and become the japan portion of the carry trade with china becoming the US portion. But I think china talked it over with russia and india and japan and thought that might not be so good as the asia countries like to be exporters. If we "turn" japanese than that means we have to retool up and start exporting. It becomes a differnt brand of co-dependancy and china is going to try for a more balanced system.

They are awfully oppressive of the people but I think theres alot of misunderstanding on both the governments part and the peoples part. China has always been isolationist and strived for good balance in that isolationist world. Going out into the greater sphere is scary for it because the world only seems to know one way to act. Master and servant and that just doesn't vibe right for the entire country.

In 1968 it was still illegal for a private citizen to own gold in the United States or the United Kingdom. Gerald Ford did not rescind Order 6102 of 1933 until 31 December, 1974. The UK restored the right to own gold even later.

The original spread betting firm, IG Index, was established as international Gold Index. When private ownership of gold was illegal, IG Index allowed citizens to "bet" on the price of gold as a proxy for ownership. Seems quaint that betting was legal (and profits tax free in Britain) but owning gold as an investment was a crime.

This is a delightful document. A peek for the little people into the bankster realms.

Amazing delicious and juicy phrases like:

"The technique of periodic reshuffles differs from a fixed link between the NEW ASSET and gold in that it is far more flexible and convincing in bringing home that the new asset is a FULL SUBSTITUTE FOR GOLD."

"these other rules, however, are of secondary importance compared to the overriding urgency of ensuring that the NEW RESERVE ASSETS will really be an effective substitute for GOLD."

The inflationary regime, prior to "going off gold" as the backing asset, needed to suppress the price of Gold to cover-up constant theft from the people via inflation. Their losses were mounting because Gold-vigilantes (here referred to as "speculators") were gunning the price of gold and costing the central banks *trillions* (in 1968 dollars!), to suppress the Gold price to its fixed ("agreed upon") $35 basis.

Once Kennedy was out of the way and patsy-Nixon kowtowed to closing the Gold window, the game became infinitely easier. The "NEW RESERVE ASSET" problem evaporated (replaced by "trust" in the fiat issuer). And the price of Gold has kept a tight pace on actual inflation ever since.

Manipulations of gold by the inflationist regime since the closing of the Gold window have been significant, but far less costly...they merely have to create the periodic impression that Gold (and hence "inflation") is NOT out of control...far less costly than maintaining the $35 peg.

As a banker to a King or two, I can tell you that this is the greatest game ever devised in the history of the world for transporting the wealth of nations into the hands of a very few. BRAVO! ;-)

No you don't get it. When you go and borrow money from a bank at interest under a fractional reserve system you create new reciepts for the same bars of gold. Run it for any lenght of time and eventually you get too many reciepts for the gold. Run it tooo long and someone with only 20 percent of the wealth of the nation can come in and take ALL the gold. Banks would be most likely to end up with all the receipts but those central banks are backed by individuals who have banks all over and might just move tons of the gold to europe and then ANY flinch in the banking system and ordinary people could come claim huge portions of the wealth.

Run a mortgage amortization for 30 years at 6 percent interest. Now run 10 mortgages for 30 years at 6 percent interest. That's how fast fractional reserve piles on reciepts for every bar of gold. If those 10 running mortgages are based on 80 ounces of gold you've turned 80 ounces into over 800 ounces of gold. If you paid 3 percent to borrow from depositors then you have forgered over 400 ounces to yourself and over 400 ounces out to the people.

Why don't we ever get to see in the main stream media, President Obama sitting behind his Desk in the Oval Office at the Whitehouse?

I posted this comment last night and got some pretty good replies. Let me now give you my take on the question.

President Obama has a preconceived notion of how the world should be. He sees himself sitting at the round table of the world governing body. He has no qualms about who that governing body is, that he is now a member of. Showing Obama in the Oval Office sitting at his desk implies he is the leader of this country and should be there to up hold his oath of office. That is of no concern to Obama. The psychological impact of seeing the President at his desk is an anathema of the world ruling elite and BO, who wish to establish a one world government.

obama is a rockefeller sock puppet born in
kenya with either kenyan or indonesian citizenship
and none american....

he was born mubrak obama and has adopted various
names none of which no one knows is legal....
i always refer to the imposter president as
barry soetoro mubrak hussein obama just in case
i got one of his names wrong...

his only concern is ruling the world as a
dictator....he will double cross his current
masters though....but not for our good...

London Banker ....wrong Americans have always been allowed to own gold the 1933 so called "Gold Confiscation Act" was against people hording gold Americans were allowed to hold $100.00 worth of gold...in todays terms that would be $10,000.00

London Banker ....Not wanting to be to picky Americans have always been allowed to own gold the 1933 so called "Gold Confiscation Act" was against people hording gold Americans were allowed to hold $100.00 worth of gold...in todays terms that would be $10,000.00

The Fed’s arguments against the bill are unlikely to persuade, and will undoubtedly strike the average American as little more than special pleading. Perhaps the most frequent of the claims is that a genuine audit would jeopardize the alleged independence of the Fed. Congress could come to influence or even dictate monetary policy.

This is a red herring. The bill is not designed to empower politicians to increase the money supply, choose interest-rate targets, or adopt any of the rest of the Fed’s central planning apparatus, all of which is better left to the free market than to the Fed or Congress. It seeks nothing more than to open the Fed’s books to public scrutiny. Congress has a moral and legal obligation to oversee institutions it brings into existence. The convoluted scenarios by which merely opening the books will lead to an inflationary catastrophe at the hands of Congress are difficult to take seriously.

If there is any truth to the idea of Fed independence, it lay in precisely this: the Fed may reward favored friends and constituencies with trillions of dollars in various kinds of assistance, while keeping the public completely in the dark. If that is the independence we’re talking about, no self-respecting American would hesitate for a moment to challenge it.

Latest COT due out in a few mins, will be interesting to see if there were any large changes in open interest with the PM dump the other day. No doubt some nervous BBs trying to clear out a few longs.

Will be more interesting to see how many longs stand for delivery on Monday, I'll be paying very close attention to silver. Something very strange going on there. If there's going to be a default, that's where it will come from. SLV now running in arrears to the tune of 30 million ounces according to Butler.

At last check, commercial short on silver was ~50% annual production, gold at ~40%, and those are heavily manipulated / optimistic numbers. Silver short likely much higher than that in reality.

Bears took a big hit when ABX flipped out. IMF had to come to the rescue with the stick save to cover ABX's exposed counterpart(y/ies), almost undoubtedly JPM.

More longs need to take physical delivery, haven't smelt the BB's blood this strongly since March.

oh there was massive attempt to shakeout longs
and get some of those shorts from under water

yesterday's and today's dump on gold was massive
and required some clout....probably some help
with the imf gold..

i wish the chinese would run gold up 40 usd
to break those sons of bitches...

and this is where the cftc continues to carry
water for the gold cartel - it will never restrict
short selling even when everyone knows it is
impossible for comex to deliver 40% of annual gold
production....it's a joke...

take physical posession of your gold - it is the
best thing you could do to increase its value.

They are not just an online store tho, they use the infrastructure to
provide storage/cloud services as well. Check out amazon S3. I am not
saying their valuation is fair, but if the junkers are at 20, they
could well be worth 60 in this market considering they are established
and rapidly growing in a market with massive potential that does not
cannibalize their original customer base cause it is something
completely different.

No answers…they don’t answer to the people:
Is GATA belaboring the obvious or what still can't be talked about?
“COMPLETE hocus-pocus. Who the —- does GATA think it is? The U.S. government owes it NOTHING of an explanation. If gold is manipulated, WHY would you touch it? If gold HAD been manipulated, the $1,000 price would have NEVER materialized. Keep rooting for the masses, and revolution, and all that nonsense. The market is the market, and it WILL prove you (and them) wrong. Tinfoils, one and all. I am no guru, but at least I do not dwell on science-fiction stories. THEY make a living at it. Pathetic.”

you may be no guru but you are a complete fucktard...
i have never seen a fed-cia asswipe get so bent
out of shape over a citizen's right to know....
but then david rockefeller and his cia-fed have no use for
representative government....

every citizen in america has a right to know how
his money is being managed and thus what the
government is doing with gold...and this government
is answerable to its citizens, hitler.

your logic would persuade only a little school
girl who had her fingers caught in an electrical
socket...a 1000 usd price is proof of nothing
other than gold is trading at that price...

the evidence is complete and overwhelming regarding
the on-going government suppression of gold enabling
its crooked rape of america and the world.

The document was written in an age when gold _was_ [officially defined as] money. The specific problem at the time was gold's convertibility to the dollar at a fixed rate and the necessity to maintain sufficient stocks to satisfy demand, both commercial and financial.

'Speculators', as they are called in the document, kept buying gold (for very good reasons), thus endangering the US Treasury's ability to support the fixed conversion rate and/or maintain sufficient stocks of gold to support the conversion rate.

The document relates to an age that ended in 1971 and must be seen in that context. Since then Gold has ceased _acting_ as money, even if a lot of people think it will again at some future date.

Although there are strange goings on in the gold market, that document is completely out of context for today's market.

Fail to understand why Commercials are short? Understand what a Commercial is and their intentions as you should a Non-Commercial. I see so much complaining about the Commercial short positions but never the Non-Commercial long position. Did you know that in order to be listed as a Commercial, the entity must engaged in the use of futures hedging Commercially? That those positions are hedges against future or current ownership of the commodity or a related asset? That they are bonafide hedgers in the market?
Did you know that every single Non-Commercial position is one of pure speculation in price discovery? That not one single contract held by Non-Commercials is intended to deliver or take delivery?
Understanding that 60% of every long position in the US gold market is held by Entities with no intention of taking delivery of a single ounce should suggest that the Non-Commercials are the ones speculating in price rather than hedging physical ownership against price fluctuation.
This talk of running the Commercial shorts into a short squeeze will never happen. One person spoke of a $40 rise in pricing to sqeeze these guys. Please note that since the most recent lows near $690 the price has increased by more than $300 an ounce. Do you really think another $40 will do it? It will not, the Commercials will never cover a rising price...ever.
Everyone interested in gold pricing and ownership must understand what the Commercials are really doing. Are they speculating? Are they hedging against price flucuation in a market that is owned by Speculators seeking price discovery only?
Get this straight, Commercials never sell into falling prices. The never ending complaint that they keep adding to their shorts as prices rise is proof that they sell into rising prices. Do you understand this concept at all?